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AppNexus' First Pitch Deck

3.
Founders
• Brian O’Kelley, CEO - former CTO of Right Media.
Invented, built, sold, and launched the Right Media
Exchange. Scaled the RM environment from 10 to
1500 servers and felt the pain of not having
AppNexus.
• Michiel Nolet,VP of Product - former Director of
Analytics at Right Media.

5.
Right Media challenges
• Scale - MySpace is going to send an extra
1B imps/day of volume... next week
• Globalization -Yahoo! Japan wants to do a
pilot, but only if servers are in Japan...
• Integration - let’s integrate a contextual
analysis platform... to all 6 datacenters...

6.
Solving the Problems
• Scale: Cloud computing would have been
great - flip servers on when we need them
• Global: Multiple clouds, with smart routing /
load balancing, in key geographies
• Integration: Run new services “in-cloud”

12.
Differentiators - Near Term
• Global (some tough problems to solve
there - will be compelling)
• Ops tools (very challenging to build a
scalable ops layer)
• Customer-centric (not exciting, but need to
get the little things right - it’s a small world,
and trust travels)

13.
Differentiators - Long Term
• With network effect (lots of services & lots
of applications) will be difficult for a new
cloud player to compete - will need to
recruit the services to get the apps and will
need to recruit the apps to get the services
• Lots of tools - idea is to get applications
“locked in” to the AppNexus way

14.
Competition
• Amazon / EC2 (biggest risk - they have
capital, the SOA concept, and momentum)
• Rackspace / Gridlayer (hosting companies
have the hardware and the customer base,
but probably not the SOA mentality)
• Google /Yahoo / MSFT etc (not in space
now, but have the capex to enter)

16.
“Ping pong” growth
• First applications sign up for the cloud
• These clients become leverage to recruit
software providers
• Co-market with software providers to get
more applications on board
• Repeat...

17.
Phase 1:The Cloud
• Build-out and deploy robust physical and
virtual infrastructure to underlie the
Nexuses
• Can be profitable as a standalone service

22.
Phase 3: Nexus
• With key clients and critical mass, network
effect begins to build
• Focus on comarketing with partners - help
service providers recruit platforms & apps
• Provide arms to both sides of a war that
never ends...

23.
Phase 3 Logistics
• Begin in early 2010
• Infrastructure side of business should be
self-sustaining at this point, so shift to
marketing, support, evangelism
• Be opportunistic about acquiring facilities
• Business should be profitable but raise $25-
50MM to expand (and compete)